Posting GL transactions to different "books" in NAV

I have the requirement to produce financial statements both on a GAAP basis and also on a tax basis. Consequently, I have a need to post some transactions (like depreciation) twice, one transaction for GAAP and another separate and slightly different transaction for Tax. Then when I am reporting, I need to be able to report on the GAAP transactions and resulting balances for the GAAP statements and separately on the tax transactions and balances for the tax statements.

I know that in some systems you can set up multiple “books” to post transactions to and then choose the book(s) to report on when producing financial statements. In this case you could choose to set up your primary default book to be your GAAP book and post the GAAP depreciation transactions there and then post your tax depreciation transactions to a Tax book with the debits and credits being the difference between GAAP and Tax depreciation. Then when you are reporting GAAP statements, you just need to report on the GAAP book, but when you are reporting tax statements, you would report on both the GAAP book and the Tax book.

Alternatively you could set up a Default book to capture the majority of transactions and set up additional GAAP and Tax books for transactions that may be different for GAAP and tax reporting (like depreciation) and enter these transactions for their full amount in the appropriate book. Then when you are reporting GAAP statements, you would need to report on the Default book and the GAAP book, and when reporting tax statements, report on the Default book and the Tax book.

I am using FRx for financial reporting and I know that FRx has the ability to look at different books as described above when used with other systems.

Is there any way to do this or something similar in Navision? I am on version 4.0 SP1 on SQL Server.

Hi,

Probably the easiest solution would be to create additional accounts in your chart of accounts, for any additional reporting requirements. These new accounts could be prefixed with ‘999’ for example to keep them separate. Then depending on what you want to report on, you either include or exclude these accounts from your financial reports. If you are using FRx then it would be better to create separate reports.

Cheers.

John.